Just about any stainless will corrode under the right conditions. Deprive a portion of stainless of oxygen, such as painting and leaving out in the environment, and you will get some major corrosion under the paint.
The stainless bolts for my diving board rusted heavily. When I replaced them I went with 316, so yes, stainless can rust. It just depends on the corrosive. Various grades of stainless are more impervious to corrosives.
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